Question: E 1 1 - 3 ( Static ) Calculating Net Present Value, Internal Rate of Return [ LO 1 1 - 3 , 1 1

E11-3(Static) Calculating Net Present Value, Internal Rate of Return [LO 11-3,11-4]
Merrill Corporation has the following information available about a potential capital investment:
Assume straight line depreciation method is used.
Required:
1. Calculate the project's net present value. (Future Value of \(\$ 1\). Present Value of \(\$ 1\). Future Value Annuity of \(\$ 1\). Present Value Annuity of \(\$ 1\).)
Note: Use appropriate factor(s) from the tables provided.
2. Without making any calculations. determine whether the internal rate of return (IRR) is more or less than (expression error) percent.
3. Calculate the net present value using a (expression error) percent discount rate. (Future Value of \(\$ 1\). Present Value of \(\$ 1\). Future Value Annuity of \$1. Present Value Annuity of \$1.)
Note: Use appropriate factor(s) from the tables provided.
4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than (expression error) percent.
Complete this question by entering your answers in the tabs below.
1. Calculate the project's net present value.
Note: Do not round intermediate calculations. Round the final answer to nearest whole dollar.
2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 10 percent.
1. Net Present Value
2. Internal Rate of Return (IRR)
3. Calculate the net present value using a 20 percent discount rate.
Note: Do not round intermediate calculations. Round the final answer to nearest whole dollar.
4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 20 percent.
3. Net Present Value
4. Internal Rate of Return (IRR)
E 1 1 - 3 ( Static ) Calculating Net Present

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